Financial Times reports that the UK economy that has shown signs of growth is finally slowing down. The managers’ index for manufacturing purchase power has decreased to its lowest point, on the index at 54.6, in the past seven months. Previous reports had been posted at 56.7 in March and 61.7 in January of this year.
The weak growth is becoming a concern for the UK, as it seems consumer trends have started to revert to a lower consumer demand. While the exports of products has actually increased over the past few months due to the weakening of the pound, the domestic market has seen little growth over this seven month period.
With the pound growing weaker over the past few months, this should be something to watch and see how the UK will improve their domestic economy. The exports for the country won’t be able to compete and keep a viable source of revenue in the future, and the best chance is for the pound to become stronger to improve domestic purchasing power.
Should the UK be concerned with the slower economic growth? Would a stronger or weaker GBP help the UK economy more?
References: “UK Manufacturing Slows to Seven-Month Low”. Financial Times
(Post by Evan Amano)
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